Last month, FedEx announced its planned rate increases for 2022 with a 5.9% overall bump. In a move that shocked precisely zero percent, UPS announced the same 5.9% increase and a new peak surcharge.
At the end of October, UPS announced its best year yet– and we still have two months to go. Both consolidated operating profits and consolidated revenue grew, leading UPS CEO Carol Tomé to announce that during, “the first nine months of 2021, UPS has generated more operating profit than any full year in our history.” Despite supply chain limitations, UPS has benefitted from the pandemic-driven boom in online shopping, a trend that doesn’t seem to be slowing anytime soon.
In their Q3 2021 earnings call Tomé announced that, while they are laser-focused on peak shipping now, rate increases for 2022 are coming soon. She says, “The 2022 increase will be 5.9%, reflecting the value of the services we offer and cost inflation pressures… As we move ahead, we will continue to execute by leveraging our global Smart Logistics Network, our amazing UPSers, and a strategy that’s driving strong financial results today and positions us well for the future.”
Following in FedEx’s footsteps, this increase is larger than last year’s increase of 4.9%. Does the service warrant the increase? Maybe. As of the Q3 earnings call, UPS announced that they service 90% of the country for expanded weekend service for both residential and commercial pickups and deliveries.
In addition, UPS announced new peak charges for certain UPS Air Residential, UPS Ground Residential, and UPS SurePost packages. These surcharges range from $1.15 to $6.15 per package and will remain in effect through January 15, 2022.
UPS is working hard to make this peak season a success for everyone, with Tomé stating that, “In the U.S., we project a robust peak season, and through our planning efforts, we believe we are well on our way to deliver a peak that will be a win for UPS shippers, recipients, and shareowners.”
At ShipRx, we work hard to put your success first. Rising costs and increased surcharges are inevitable, but we’ve helped shippers just like you save 20 – 30% on their shipping costs through contract negotiations. Our team has decades of experience negotiating contracts– for the carriers and for shippers. We know what’s fair and we only get paid when you save money. We’ll assess your current contract for free, and if your rates are good, we’ll tell you. If not, we’ll help you save money.
Call us today for a free contract assessment and let’s make shipping a win for you!
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